National Report of Economic, Labor and Union Situation in Colombia – 2010
We share the National Report of the social, economic and labor situation for Colombia in 2010, a study traditionally launched by the 1st of may by the ENS. In this version of the study, is remarkable the increase for the child work, informal work and the lack of generation of new jobs, despite the economic growth lived by Colombia, specially given due the Increase of Diretc Foreign Investment.
Published on: Mar 3, 2016
Transcripts - National Report of Economic, Labor and Union Situation in Colombia – 2010
Agencia de Información Laboral Abril 1 de 2011 National Report of Economic, Labor and Union Situation in Colombia – 2010 Despite the Economic Growth, the Labor Situation of Colombia Shows no ImprovementT his report remarks the continuity of a labor situation characterized by a big deficit of decent work, whichobeys to a process of systematic exclusion of the workers dies of the ILO, and specially the conclusions of the Mis- sion of High Level of the ILO who came to the country in February of 2011. In second place, the commitmentsand their organizations. This process may be described that the President of Colombia has engaged with the Na-from the following aspects: tional Union Centrals, expressed these in the meeting of Political exclusion of the worker’s movement and the March 31st and, in third place, the Action Plan betweenworkers themselves (antiunion culture); Both social dia- the Governments of Colombia and The United States oflogue and collective bargaining remain as residual; eco- America.nomic and social exclusion; labor relationships without In case of an effective articulation of this Labor Agen-any labor rights; unemployment, low rates of income, da, we would witness changes in five main cores: The la-informality and lack of social protection; exclusion by bor formalization, the right of labor association, the rightage and gender (youngsters and women have the worst of collective bargaining, the overcoming of the antiunionlabor conditions); Institutional exclusion, which mean violence and the strength of the labor institutions. If anan institutional design opposite to the labor rights and Agreement of such reaching takes place, we would be inunion freedoms; Inadequacy of the national laws with front of the most important labor agenda of the last twothe international standards, weakness of the State Labor decades, which could mean that two millions of workersInspection; physical exclusion (Systematic and delibe- acquire labor rights, and the labor organizations may de-rated violence against the union movement, generalized velop their work with the least limitations.impunity in the crimes committed against union leadersand members). Inequality, the worst obstacle for the inclusion and On the other hand, the most important topic at the growthmoment is that after many years of union and labor is- In Colombia, there’s an immoral abysm between thesues, these have become central point of the public deba- richest and the poorest population. Is, today, the most un-te, due to the call made by the President of the Republic equal country in Latin America1. The GINI Coefficient,Juan Manuel Santos to the Colombian Union Centrals the most worldwide accepted indicator to measure inco-for the subscription of a Labor Agreement. We unders- me, was for Colombia in 0.58% in 2009. However, intand that this Agreement rises as a result of the demands more complete measurements, as the one made by theand struggles of the Colombian Union Movement and Professor Jorge Ivan Gonzalez, from the National Uni-other social, democratic and forward movements in thiscountry, with the accompaniment of the International 1. According to Samuel Azout (High Councilor for the Prosperi-Union Movement. ty), the country now has taken the fourth place of inequity in The agreement that is being discussed must contain, terms of the distribution of the Income, and the perspectives ofin first place, recommendations from the supervisory bo- change of this gives very little hope
Agencia de Información Laboralversity of Colombia, the actual GINI coefficient could be remployment rate was of 32.6%, compared to this rate inplaced between 0.85% y 0.9%. 2009, which was of a 29.7%. According to official data for 2009, the 45.5% of the Women present a higher rate of subjective underem-Colombian population lives in poverty and the 16.4% in ployment, compared to male workers. For 2010, the fema-the indigence. This means, that 20 million of Colombians le subjective underemployment rate located in a 36.3%,barely survive. And, in the rural zones, the poverty and compared to the male workers’ one, which came to a 31%.indigence is even higher: 64.3% and 21%, respectively. In Colombia, the 10% richest receive more than a The rate of unemployment for household heads50% of the Gross Domestic Product-GDP of the Coun- dropped very littletry, and sustain two people. Meanwhile, the 10% poorest Meanwhile the household head unemploymentreceive a 0.06% of the GDP of the national wealth and rate was 5.9% in 2010 this rate was of a 6.2% in 2009,sustain 6 people. This is the size of our social debt. Nati- showing a marginal reduction. There are not enough jobsves and African Colombians are the poorest populations, in the market to absorb the available labor force. Wives,with indexes of unsatisfied basic needs of 57% and 66% children and relatives are forced to leave inactivity inrespectively. 800 municipalities have poverty indexes seek for jobs, so the home’s income doesn’t suffer.over a 66%2. The female household heads present double more unemployment than their male pairs. In 2010, this rateQuality in work: the worst in Latin America was 9.6%, compared to a 4.7% in 2009. Practically, Colombia didn’t suffer the world eco-nomic crisis and its economy continued to recover. The The unpaid work, unskilled labor market and lowDGP grew a 4.3% in 2010, compared to the growth of incomes increased.1.5% in 2009. In 2010, all the new work was created in the informal However, this growth is neither redistributed non sector, self-employment, or unpaid jobs. The self-em-productive, and doesn’t generate decent work. The sec- ployed increased in 6% and the unpaid family workerstor that pulls up the Colombian economic is mining and increased in 8%, such as the unpaid workers in other in-quarrying, with a growth of 11.1%. Commerce did this in dustries, which increased 16% compared to 2009.a 6%, manufacturing industry 4.9%, transportation, sto- In 2010 the whole 43.2% of occupied people wererage and communications 4.8%, and the services’ sector self-employed (8’309.000), followed by particular occu-a 4.1%. In the practice, the Colombian economy neither pied which participated with a 34.3% (6’599.000). Onlygenerates formal non decent work, except for those wor- the 4.2% of the occupied population belongs in the Pu-kers with complete superior education. blic Sector (809.000). The miscalled ‘working market’ remains in a stands- The labor force in the country is under skilled, andtill. The occupation rate maintains in an annual average with less skilled workers more poverty and more infor-of 55.3%, with very little rises in the Christmas time, mality. Only the 21.5% of the occupied population hasspecially. In the other hand, the unemployment rate any kind of education, and a 42.5% (8’160.000 wor-doesn’t drop, sustaining in 11%. In 2010, there were kers) has Junior High education, followed for a 30.8%about 2’562.000 unoccupied population in Colombia, 49 (5’921.000) with primary education.thousand more than in 2009. 8’920.215 workers, a 46.4% of the whole occupied Each time more female and male working popula- population, earn less of a minimum wage. 6’137.184tion are underemployed, ever since these are engaging workers, a 31.9% of the Whole Occupied Populationin labor activities below they capacity, education and earn from 1 to 2 minimum wages. The 78% of the oc-working shifts that they may get into. In 2010 the unde- cupied earn less of 2 minimal wages by month, and only the 4.4% receive 4 or more minimum wages by mon-2. External inequality, Semana.com, Saturday, May the 12th of th. 61% of the informal workers earn less of a minimum 2011 wage. Put the lowest salaries are presented in a mayor
Agencia de Información Laboralproportion among the farmworkers. 67% of these receive Low coverage and quality in social security, Pensionless of a minimum wage by month. System and labor risks. In 2010, according to DANE, 17’083.000 peopleThe informality continues to grow3 were affiliated to the Social Security System in Health The labor informality is the main cause of social ex- Services (the 89% of the occupied population). Fromclusion and poverty. The 58% of the workers suffer it. these, 8’588.000 people belong to the Health Contribu-Compared to 2009, the informal working population in- tive Regime, and 7’955.000 belong to the Health Subsi-creased in 152.000 people. The 83% of the whole infor- dized Regime.mal workers are unskilled labor force. The formal labor In this year, the affiliation to the Pension System de-force with superior education is 49.7% of the whole ca- creased in 8.7%. Only the 31% of the workers appearedtegory, while 41.3% of the formal workers have a Junior as affiliates who contribute to this System. For the Who-High Education. le Country, the female population presents an affiliation Only a 10% of the informal workers have full social rate of 41% and for the 13 metropolitan areas this indica-security, this corresponds to 484.000 occupied people, tor increases to 43.3%.27.000 more people than 2009. From 2009 to 2010, there In the same year, only the 35.5% of the occu-were more workers in the informal sector without social pied people were affiliated to the Labor Risks Systemsecurity in the majority of the economic activity branches. (6’826.500 people). Over two thirds parts of the affilia- The informality among the main capital cities of Co- ted are located in three regions: Bogotá, Antioquia andlombia is serious, but in some cases it’s just dramatic. In Valle. In 19 municipalities of the country the coverage is2010 Cúcuta had an informal work rate of 67%, followed below of a 1%.by Montería with a 66.7%, Pasto with 65.4% and Villavi- In Colombia, one labor accident occurs by the minu-cencio with a 63.2%. Only three big capitals locates be- te. In 2010, 538.911 labor accidents were recorded. Thelow the rate for the 13 metropolitan areas: Bogotá with a diseases related to labor activities increased in 38.72%.45.8%, Medellín with a 48.4% and Manizalez with a 48.7% 12.609 diseases related to labor activities were reported in Table 1- Indicators for the Labor Market- Colombia 2010 but the Labor Insurance Companies qualified as such Concept 2010 2009 only 9.411. In this year, 958 labor casualties occurred, 3 Occupied 19.215 18.427 per day. Of these, 158 happened on the mining industry. Unoccupied 2.562 2.513 Inactive Population 12.938 13.229 The number of working childhood increased Working-Age population (PET In Spanish) 34.716 34.170 According to the most recent numbers given by Economic Active Population (PEA in Spanish) 21.777 20.941 DANE, the working childhood increased. In 2007 the Global Participation Rate (TGP in Spanish) 62,7 61,3 rate of working children was 6.9%; for 2009 this rate was Occupation rate (TO in Spanish) 55,4 53,9 of 9.2%, showing a growth of 2.3% in two years. Most Unemployment Rate (TD in Spanish) 11,8 12,0 of the working female and male kids do it in agriculture % of Inactive population 37,3 38,7 (37.3%), followed by commerce (30.5%) and manufac- Subjective Underemployment Rate 32,6 29,7 turing industry (13.6%). Objective Uderemployment Rate 12,6 10,9 1’050.147 children and adolescents between 5 and 17 years old were working in 2009, beside the 799.916 female and male kids dedicated to household activities.3. The informality, as defined by the National Administrative De- This means that the actual rate of working children is partment of Statistics, DANE in its Spanish abbreviation, refers 16%. to the group of employees and Employers in enterprises with The other topic is that working children do it inten- less of five workers, such as the self-employed people and non- college titled workers, the domestic employees and non-paid sely. The 41.3% work less of 15 hours per week, the workers. 29.7% between 15 and 34 hours, 18.1% between 35 to
Agencia de Información Laboral Miércoles, 6 de abril de 201148 and 11% work over 48 hours per week. The conse- tor of the population. The first one is a System of benefitsquences of this in their adult lives shall be dramatic. of $46.073 COP by month (US $ 26.14817), benefiting to This type of work increases due to the decreasing 573.471 elders8. The other policy consist on a food ration,family income. The 36.1%of children work because which benefits monthly to 417.143 elders in high grade“(they) Must participate in the economic activity of the of vulnerability, with a coast per person of COP $42.143family”, according to DANE. 14.17% was not affiliated (USD $23.9177), coast which correspond mostly to ope-to a health social security system (15.5% of the total for rational expenses incurred by the Colombian Institute formale population, and 12.8% of the female population), the Family Welfare (ICBF in its Spanish abbreviation) toand 78% were affiliated to the Health Subsidized Regime. deliver such ration. The cities with more incidence of working childhoodwere Montería (12.9%) and Bucaramanga (12.1%). Sur- Females suffer more informality and unemployment,prising yet incredible is the low rate of Working Child- and less income than males.hood at Cartagena (0.9%), where there’s a very serious From each 100 male and female workers among theissue of children’s sexual exploitation. The rate of wor- Economic Active Population in 2010, there’re approxi-king Childhood at Medellín remains high: 6.6% in2009, mately 44 women and 68 men employed. There areafter a 4.1% in 2007. Is not a surprise de descent in the 430.000 more occupied women against 2009.Working childhood rate at Bogotá, 2.8%, as a result of While the female unemployment rate is a 15.6%, fe-social policies in free education, and the increase of the male is on 9%. The city with the highest rate of femalecoverage and access to basic rights for the children. unemployment is Pereira, with 23.3%, followed by Iba- gué with a 19.6%. The cities with lowest rates for this po-The elderly grows in quantity and vulnerability pulation are Bogotá (12.2%) and Barranquilla (12.4%). By December 31st of 2010 there were 1’516.980 From each 100 occupied women, 42 are self-emplo-people with a pension or retirement income. However, yed (A point more than in 2009), and 33 are workers ornot all the retired people are by old-age, because in these particular employees (one point less).retirement salaries are included the ones given by mayor Women remain attached to two sectors of the eco-age, disability or survivorship4. nomy: social, community and personal services (32.6%) Actually, the percentage of elders (over 60 years) that and commerce, repairing, restaurants and hotels (32.1%).receive any of these pensions is 72.22%5, corresponding to In 2010, the 60.3% of the occupied women earned1’095.363 people. This means that, against an elder popula- less of a minimum wage against a 50.5% of men, whichtion of 6’288. 223 estimated by DANE statistics for 20106, evidences that women have a worst location in the laboronly a 24.49% (1 of each 4) was receiving any pension. market and the enter it to be secondary generators of in- The State has implemented two policies for this sec- come, and not because a seek of a relevant improvement of their lives’ quality.4. According to the Financial Supervision of the Government of According to education levels, is important to tell that Colombia, SUPERFINANCIERA in its Spanish abbreviation, from the whole occupied women 26.9% have any title for the whole retired people in the average premium pension acquired in superior education, and 43.1% have junior scheme, the 87.39% are old-age pensions, 8.6% for survivors- high education. For men, only the 17.7% of the occupied hip, and 36.8% for disability. In the Private Retirement Funds, have superior education, and 41.3% junior high education. 54.21% are pensions by survivorship, and 24.83% by disability, and 20.96% by old-age. The situation of women in the rural area is even more5. This percentage is allowed to acknowledge only from the statis- serious. Only the 31% of the women in age of working tics given by SUPERFINANCIERA, compared to the age ran- ges of the retired with an average premium pension scheme. Go 7. These amounts were converted with XE Currency Converter, on to www.superfinanciera.gov.co, statistics/pension system. May 6th of 2010.6. DANE, proyecciones nacionales y departamentales de pobla- 8. Social Protection Ministry, Report of Activities, 2006-2010 ción 2005-2020, Estudios postcensales N° 7, 2009 quadrennium, June 2010. Page 72.
Agencia de Información Laboraldo it, against 73% of occupied men. Comparing 2009, lombians, followed by the particular workers (34%) withthe female occupation rate was of 28.7% and the male a total of 6’571.000 people. The State employees have aone 71.5%. This shows that there are more occupied wo- low participation (4%), equivalent to 781.000 occupied.men in the rural sector. Analyzing by branches of activity for the same pe- riod, the occupied were located mainly in commerce,Young population: victims of unemployment and hotels and restaurants (27%), followed by community,precariousness social and personal services and agriculture, fishing, The youth unemployment rate was located in an hunting and forestry, both with an 18% of participation.average of 21.3% average, which means a derisory re- The manufacturing industry participated with a 13%.duction of 0.3% against 2009. Unemployment of youngwomen is even higher, with a rate of 28.2%, meanwhile In Medellín, we still suffer a structural employmentthe young male unemployment rate was of a 16.5%. The crisis1’175.000 unemployed youngsters represent a 45.8% of For Medellín, the unemployment rate was of 13.8%the whole occupied people. The percentage for unoccu- and occupation rate of 54.3%. The city had 245.000 unoc-pied young women approaches to 55.6%, and for young cupied and 1’535.000 occupied. These ones were mainlymen it locates in 37.6%. in the sectors of commerce, hotels and restaurants with By economic sector, youngsters are located mainly in 29% of participation, followed by the manufacturing in-commerce, hotels and restaurants (27.3%); agriculture, dustry and community, social and personal services bothfishing, hunting and forestry (20.7%); community, social with a 21% of participation. Besides, the occupied po-and personal services (17.2%); manufacturing industry pulation was a 54% of particular workers, followed by(12.5%). These numbers are very telling: of the 5 locomo- a 31% of self-employed, 450.000 occupied people. Thetors of the development proposed by the President Juan household and State employees participated with a 4%.Manuel Santos, youngsters have an active participationonly in two sectors: agriculture and building. In compa- Historical growth of the workers’ protests.rison, mining occupied 560.000 youngsters in 2010. In In 2010 the mobilizations and labor protests increa-this economic sector, only 5000 new employments were sed a 71% compared 2009, which evidences the greatcreated in last year. social disconformity about the handling of labor issues. 465.000 youngsters work without any type of re- In this year, 54 strikes, 5 stops caused by collectivemuneration, and 1’408.000 are self-employed (a 32.4% conflicts, 32 days of protests, 27 marchs, 31 stormingfrom the whole of occupied youngsters). and blocking of installations, 22 meetings and 5 symbo- lic resistances took place, for a total of 176 actions forThe first numbers for 2011 are not any better the labor and union demands, the highest record since By February of 2011, the open unemployment arri- 1990. These were caused by the opposition against Stateved to a 12.8%. In this month the unoccupied population policies and the non-fulfillment of labor laws, speciallyin Colombia reached the 2’805.000 people. Now; the oc- related to the payment of wages.cupation rate in in 54.4%, what translates in 19’079.000Colombians employed. The intention of extermination (violations against In other hand, is evident the growth of the inconfor- life, freedom and integrity) increasesmity with the work of the Colombian workers, and this Despite of the political efforts to transform and era-is supported by the increase of the subjective unemploy- dicate the antiunion violence, the international pressurement rate, located in 32%. in the international negotiations of the FTA and the cons- Analyzing the numbers by occupational position, for tant recommendations of international institution suchthe mobile trimester December 2010-february 2011, most as the ILO and the UNDP, the scenery for the antiunionparticipation of occupied people has the category of self- violence is still critical.employed (44%), representing a total of 8’346.000 Co- Murders of union leathers increased, going from 47
Agencia de Información Laboralin 2009 to 52 in 2010, 11 of these occurred in Antioquia. leche, Parmalat, Coolechera. In the transportation sector:In such way, there is concern about the increase of for- COPPETRAN, FENOCO. In the bank sector: Banco deced disappearance cases (7), and attacks against union Bogotá, BBVA. In the flower sector: Nanenti/Sunburstleathers (21). This raise may be interpreted as a serious Floramérica. In the healthcare sector: Colombian Redsymptom of the reordering and reappearance of the para- Cross. In metalworking sector: CENTELSA, owned bymilitary groups, in the figure called ‘Criminal Bands’. SANFORD GROUP. In the fabric sector: HILANDE- The 30% of the murdered union population were RÍAS UNIVERSAL S.A.S. “MULTIHILOS”.union leaders, and a third part of these are cases are per- In the state sector is still prohibited in the practice thepetrated by paramilitary groups, as suspected. collective bargaining, violating international agreements From the total data recorded by the ENS between and the very own Colombian laws.1986 y 2010, it is found that, at least, 11399 violations The most serious cases of infringement against co-against the life, freedom and integrity of union members llective bargaining for State employees took place at thehave happened ever since. Of these, 2863 were murders, National Registry of Civil Status, University of Tolima,134 occurred in Antioquia. 279 attacks against life and in the very Ministry of Social Protection, in the Ministry218 disappearances were recorded as well; at least 5030 of Foreign Commerce and Tourism and the Municipalthreats of death against union members due to their union Mayor of Popayán.activities were made, and 1742 forced displacements oc-curred. The Foreign Direct Investment keeps increasing During the Presidency of Juan Manuel Santos 23 without creating any new jobsunion members have been murdered, 5 in Antioquia, and The Direct Foreign Investment (FDI) for the threeduring the current 2011 6 union leaders have been killed. first trimesters of 2010 increased 3.2% compared to theThe collective bargaining keeps dropping same past period9. According to the Social Protection Ministry, until The sectors where the FDI grew were: manufacturing,October of 2010 a total of 175 collective conventions financial establishments and commerce, restaurants andand 197 collective pacts were negotiated, numbers which hotels. However, even the most FDI to Colombia (hydro-correspond to the 62.5% and 87.55% of the total of pacts carbons, mining and quarrying) had a decrease (-10.3%and conventions deposited in this Ministry in 2008, year for mining and quarrying and -8.7% for oils), this conti-we must compare to, because most of these agreements nued to have the most participation of the total FDI: 61%have a term of two years. both together. Is remarkable the growth of 183.8% in the During all 2010 serious cases of antiunion activity manufacturing industry, compared to its participation inhappened, in which employers managed to avoid the for- 2009. As this one is remarkable as well the increase ofmation of union organizations in their enterprises, also 58% in the financial establishments sector, which attrac-avoid workers to join these or the collective bargaining. ted US $776 million.The most representative cases occurred in the following The concentration of the participation of Hydrocar-sector sna enterprises: bons, mining and quarrying in the FDI to Colombia con- In the transportation of economic values: DOMESA figures as a recent trend, and maintains a growth pers-and PROSEGUIR. In the mining sector at Guajira and pective. Between 2006 and 2010 the Hydrocarbons haveCesar: DRUMMOND, CHANEMME COMERCIAL attracted an average of 33%of the whole FDI. These dataS.A., Glencore, Coals of La Jagua, ARAMARK. In the contrast whit its poor participation in terms of works, asoil sector: Gran Tierra Energy and Esmerald Energy, both these two sectors only have created the 1.5% of the totalCanadian multinational enterprises that extract oil at Pu- jobs created between 2006 and 2010, while both of themtumayo; the British Petroleum Company and in OCEN- have captured the 58.4% of the FDI in the same period.SA SCHLUMBERGER SUERNCO S.A. In the food anddrinks’ sector: The Coca Cola Company, SODEXO, Pro- 9. US $6,524 million in front of US $6,324 million